Investment Market monthly - November 2018

Publication

Investment Market monthly Germany - December 2018

Commercial investment market

  • The commercial investment market has a new record in its annals. The transaction volume in 2018 totalled €60.4bn, breaking the €60bn barrier for the first time ever (Table 1, Graph 1). Last year was also the fourth successive year in which investment has totalled more than €50bn, underlining Germany’s status as a safe haven for investment. The transaction volume in 2019 is also expected to reach at least €50bn.
  • Of those investors that acquired German commercial property for at least €50m last year, around fifty were making their first investments in Germany in a decade. The German market continues to be predominantly defined by risk-averse, equity-rich investors (Graph 7).

Residential investment market

  • Properties in the German residential investment market changed hands for almost €15.1bn last year, the third highest transaction volume in the last ten years (Table 4). Transactions with a double-digit or triple-digit quantity of apartments accounted for around 48% of all apartments transacted. This is a reflection, on the one hand, of the increasing prevalence of development acquisitions and, on the other hand, the likelihood that the lack of supply of large portfolios has increased investors’ willingness to acquire smaller residential portfolios.
  • The continued strong appeal of the residential property market to institutional investors is demonstrated by the large number of first-time purchasers. Of the purchasers in 2018 known by name, almost 38% were investing in the German residential market for the first time in the last ten years.